Corporation, a U.S. firm with a calendar accounting year, agreed to buy a
specially made truck from a Japanese firm for delivery on February 28, 2017
with payment due on that date. On the same date the agreement was signed,
November 1, 2016, a forward contract due on February 28, 2017, was also signed
to purchase 1,000,000 yen, the contract price of the truck. Exchange rates were
rate = 8%
Prepare the journal entries needed to properly
reflect the purchase and forward contract through the end of the fiscal year.